Res 2004-184 - Laserfiche WebLink

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I I I 54. MEMORANDUM OF UNDERSTANDING THIS MEMORANDUM OF UNDERSTANDING (this "Memorandum") is entered into this 9th day of November, 2004, by and between the City of San Marcos, a home-rule municipality located in Hays County, Texas (the "City") and John Q. Hammons, Trustee of the John Q. Hammons Revocable Trust dated December 28, 1989 ("Hammons"). The City and Hammons have engaged in preliminary discussions concerning a proposed hotel and conference center which may be developed by Hammons and the City (the "Proiect") in San Marcos, Hays County, Texas. This Memorandum outlines certain general parameters under which Hammons and the City would be willing to pursue the negotiation of possible detailed definitive agreements pertaining to the Project. This Memorandum is not, nor is it intended to be, an exhaustive or complete discussion of either the terms and conditions set forth herein or of any prospective agreements pertaining to the Project but merely provides a non- binding framework for focusing negotiations of possible definitive agreements. As set forth in more detail later in this Memorandum, nothing contained herein is intended to be binding upon either party with respect to, nor bind any party to pursue any transaction regarding, the Project. Subject to the foregoing and the other provisions hereof regarding the non-binding nature of this Memorandum, the following are certain general parameters pursuant to which Hammons and the City would commence negotiations concerning the Project: I. Proiect Site and Preliminary Matters. The Project would be developed on an approximately fifteen (15) acre tract (the "Proiect Site") located west of the San Marcos Treatment Center property off of Bert Brown Road in San Marcos, Hays County, Texas, the exact location of the fifteen (15) acre tract would be mutually agreed upon by the City and Hammons as part of any definitive agreements. Hammons would acquire the Project Site once it is identified. In the event the Project Site, or any portion thereof, is not located within the municipal boundaries of the City, Hammons would be required to petition the City to annex the Project Site and comply with any requirements of the City in order to have such property annexed into the City. The parties' respective obligations under any definitive agreements would be conditioned upon the entirety of the Project Site being within the City's boundaries. Once the entirety of the Project Site is within the City's municipal boundaries, the City staff would initiate the necessary zoning case or cases to cause the Project Site to be properly zoned to allow for operation of the Project thereon. The parties obligations under any definitive agreements would be subject to and conditioned upon approval by the City of zoning or rezoning that allows for the operation of the Project at the Project Site. Upon annexation, the Project Site would have to be designated as a tax increment reinvestment zone pursuant to Chapter 311 ofthe Texas Tax Code. The parties obligations under any definitive agreements would also be subject to and conditioned upon such designation being granted and a "TIF" being approved by the City and Hays County for the Project whereby the property tax increments generated by the City and Hays County from the Project Site would be applied to the payment of the indebtedness incurred by the City in connection with the design, 1 69311413